A Scalable Energy Management Mechanism for Peer-to-Peer Electricity Market

With the rapid development of distributed energy resources, an increasing number of residential and commercial users have been switched from pure electricity consumers to prosumers who can both consume and produce energy. To properly manage these emerging prosumers, the peer-to-peer (P2P) electricity market has been explored and extensively studied. In this article, a scalable energy management mechanism is proposed for the P2P electricity market. First, the multibilateral economic dispatch problem that maximizes social welfare is formulated, considering product differentiation and network constraints. Then, an energy management mechanism is devised to improve the scalability from two aspects as follows. i) An accelerated distributed clearing algorithm with fewer optimization variables and communication messages and a faster convergence rate. ii) A novel selection strategy to reduce the computational and communication overheads per player. Finally, the convergence rate of the proposed clearing algorithm is given, and the effectiveness of the proposed energy management mechanism is illustrated through numerical simulations.